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All Forum Posts by: Kadia Lawrence

Kadia Lawrence has started 18 posts and replied 56 times.

Post: Tenant ghosted after signing the lease

Kadia Lawrence
Posted
  • Posts 56
  • Votes 15
Quote from @Nathan Gesner:
Quote from @Kadia Lawrence:
It depends on your written agreement. I explain the Holding Deposit in the book. My policy is that they forfeit the entire amount. Other landlords choose to withhold a prorated amount if they find a replacement tenant within 30 days of the original lease start date. It's your choice.

 sounds good, thank you!!

Post: Tenant ghosted after signing the lease

Kadia Lawrence
Posted
  • Posts 56
  • Votes 15
Quote from @Nathan Gesner:
Quote from @Kadia Lawrence:
Quote from @Nathan Gesner:

My process: give the applicant 24 hours to pay the deposit. If they don't, then I don't hold the property for them. Holding the deposit shows they're serious. If they back out, you can use the deposit to cover unpaid rent until a replacement tenant is found.


 Hi Nathan. Does that mean you make the deposit non-refundable and convert it to a security deposit if they move in?  Do you charge the entire value of the security deposit as the non-refundable holding fee? Finally, how long do you hold it for them?


 Correct. I actually use a "Holding Deposit" with a one-page Holding Agreement. It says I am taking their money and holding the property with an expected rent start date of X. If they fail to move in, the forfeit the Holding Deposit. If they move in as agreed, the Holding Deposit is converted to a Security Deposit.


 ah okay, thanks!  I just got your book and just started perusing and got some good direction there as well :-)!!  Thanks.  By the way, do I call it a Holding Fee vs Deposit? Also, if the applicant pays the holding fee and decides not to rent, do you always pro-rate and give back some of it if you get someone to rent within the month?

Post: Tenant ghosted after signing the lease

Kadia Lawrence
Posted
  • Posts 56
  • Votes 15
Quote from @Nathan Gesner:

My process: give the applicant 24 hours to pay the deposit. If they don't, then I don't hold the property for them. Holding the deposit shows they're serious. If they back out, you can use the deposit to cover unpaid rent until a replacement tenant is found.


 Hi Nathan. Does that mean you make the deposit non-refundable and convert it to a security deposit if they move in?  Do you charge the entire value of the security deposit as the non-refundable holding fee? Finally, how long do you hold it for them?

Post: How do we feel about fish?

Kadia Lawrence
Posted
  • Posts 56
  • Votes 15
Quote from @Nathan Gesner:
Quote from @Kadia Lawrence:

Deposits are refundable. I always charge fees for animals so it's money in my pocket.

I occasionally waive the fee for a fish tank, depending on the quality of renter. A 19-year-old working at McDonalds? I'm charging. A 60-year-old woman with great credit, rental history, and 20 years at the same job? I'll waive the monthly fee.

 Thank you!!

Post: How do we feel about fish?

Kadia Lawrence
Posted
  • Posts 56
  • Votes 15
Quote from @Nathan Gesner:
Quote from @Kadia Lawrence:

You can. I allow fish tanks up to 10 gallons and charge $25 a month. I also charge $25 a month for lizards, spiders, snakes, hamsters, or any other small animal in a cage or container.

 Thanks very much Nathan!  So you don't do upfront fees or deposits but instead additonal rent.  Have you had any pushback on that, especially for small fish tanks/ bowls?

Post: How do we feel about fish?

Kadia Lawrence
Posted
  • Posts 56
  • Votes 15
Quote from @Nathan Gesner:
Quote from @Marcela Hoag:

Start with a cost:benefit analysis. In my experience, over half of all renters have a pet. I don't want to lose that market! Second, I have experience with hundreds of pet owners and it is very rare (in my market) for pets to cause more damage than the deposit will cover. 

I accept them and mitigate the risk by (a) screening the animals, (b) having a solid set of rules that are quickly and fairly enforced, (c) regular inspections, especially for cat units, and (d) charging a monthly pet fee.

Let's say I have five single-family homes. Each one has a dog for $50 a month. That's an extra $250 per month or $3,000 per year. A tenant moves out and leaves $4,000 in damages. I apply their security deposit first ($1,500) and then charge them for the remaining $2,500 owed. They may pay what is owed, or I may have to send them to collections and get it the hard way. Even if they don't pay, I'm still ahead because I collected $3,000 in fees that year.

Again, in my experience, I have had hundreds of pet owners and only a few of them have caused damages beyond what a deposit will cover, so I have earned tens of thousands in exra income for my owners.

@Nathan Gesner

Would you charge non-refundable pet fee and ongoing pet rent for a fish, especially if it's a small tank, say 6 gallons?

Post: Thoughts on how to analyze small mixed-use property for rental?

Kadia Lawrence
Posted
  • Posts 56
  • Votes 15
Quote from @Andrew Bosco:

hey there! good question. Personally, I analyze the residential units as guaranteed income and don't look at the commercial space at all. If the mixed use property works with just residential, then it's a homerun when the commercial is rented.  The type of tenant you get in commercial heavily varies on the economic status of the local economy, as well as the layout/who you're catering too. For commercial spaces - I prioritize a long term / cheaper tenant over a high rent with the potential for vacancy. 


 Thank you!  That makes sense

Post: Thoughts on how to analyze small mixed-use property for rental?

Kadia Lawrence
Posted
  • Posts 56
  • Votes 15

Hi All,

I would appreciate thoughts/ considerations/ cautions for analyzing a mixed use property that has a duplex with a regular apartment next to a small storefront that's soon to be vacant? How does one anlayze the store front part? I keep wondering about insurance, vacancy rates, if tenant selection is a bigger/ different factor, terms of the tenancy and differences in opex and capex? About to go down the Youtube rabbit hole... TIA.

Post: Thoughts on how to analyze small mixed-use property for rental?

Kadia Lawrence
Posted
  • Posts 56
  • Votes 15

Hi All,

I would appreciate thoughts/ considerations/ cautions for analyzing a mixed use property that has a duplex with a regular apartment next to a small storefront that's soon to be vacant?  How does one anlayze the store front part? I keep wondering about insurance, vacancy rates, if tenant selection is a bigger/ different factor, terms of the tenancy and differences in opex and capex?  About to go down the Youtube rabbit hole...  TIA.

Post: How to calculate 3X income rule for section 8 and Minimum credit score

Kadia Lawrence
Posted
  • Posts 56
  • Votes 15
Quote from @Nathan Gesner:
Quote from @Kadia Lawrence:

I won't accept new renters with section 8 because HUD delays are ridiculous and result in additional loss of income. I only accept section 8 if it is an existing renter that then qualifies to transition to section 8.


 Ah okay, thank you. (Yes, the delay can be a bit frustrating.) Thanks Nathan.